In a major reversal, the powerhouse nontraded REIT sponsor built by Nicholas Schorsch is exiting the business of creating and selling new alternative investment products and will stop taking new investor money for existing programs.
A deal to sell the broker-dealer outright or to attract a large private equity investor is anticipated by year-end.
Though top officials are keeping mum, industry executives say prospective buyers have been kicking the tires on this indie brokerage with 739 affiliated registered reps and advisers.
Firms pull the plug after Massachusetts <a href="//www.investmentnews.com/article/20151112/FREE/151119971/massachusetts-galvin-charges-realty-capital-securities-with-proxy"" target=""_blank"" rel="noopener noreferrer">charges RCS Capital with fraudulently rounding up proxy votes</a> to support real estate deals sponsored by AR Capital.
LPL CEO Casady says that as written, rule would bar sales of certain alternative investments in brokerage retirement accounts. <i>(See also: <a href="http://www.investmentnews.com/article/20150430/BLOG07/150439998/democratic-senators-split-from-white-house-on-dol-fiduciary-rule" target="_blank">Democratic senators split from White House on DOL fiduciary rule</a>)</i>
Citigroup's Bill Katz questions report that RCAP was shopping Cetera for "fire sale" price
John Hancock Financial Network plans to acquire up to 1,100 advisers from Transamerica Financial Advisors Inc., representing roughly one-quarter of those currently affiliated with Transamerica.
Broker-dealer takes action after Massachusetts' securities regulator charged a related company with fraudulently rounding up proxy votes to support real estate deals sponsored by AR Capital.
Brokerage firm previously controlled by Nicholas Schorsch expects to have third-quarter loss due to impairment of goodwill and intangible assets.
The jewel of Nicholas Schorsch's empire is reportedly being shopped as RCS Capital, or RCAP, continues to struggle.
